CCS Consults on the Acquisition of GAPL Pte Ltd by Heineken International BV

17 November 2015

1. The Competition Commission of Singapore (“CCS”) is conducting a public consultation from 17 November to 27 November 2015 to invite interested parties to provide feedback on the acquisition of GAPL Pte. Ltd. (“GAPL”) by Heineken International B.V. (“HIBV”) (the “Transaction”), which was completed on 7 October 2015.

2. The notification for decision from HIBV with regard to the Transaction was made on 12 November 2015.

3. The notification is made under section 58 of the Competition Act (Cap. 50B) (“the Act”), which relates to section 54 of the Act prohibiting mergers that have resulted, or may be expected to result, in a substantial lessening of competition within any market in Singapore.

The Transaction

4. The Transaction involves the acquisition by HIBV of the entire issued and outstanding ordinary share capital of GAPL, which HIBV (through its subsidiary Heineken Asia Pacific Pte. Ltd., which will be referred to as “HAP”) did not already hold.

5. HIBV submits that the direct overlap in the activities of Heineken Singapore (HAP and other Singapore-registered corporates under the Heineken Group will be referred to as “Heineken Singapore”) and GAPL is the licensing of brands of beer (including all ale, lager and stout) for the production, marketing, sale, distribution and supply in Singapore.

6. HIBV submits that the relevant market is the production, marketing, sale, distribution and global supply of duty-paid and duty-free beer (which includes all ales, lagers and stouts) to Singapore and that the Transaction will not result in the substantial lessening of competition in the relevant market.

Public Consultation

7. CCS is inviting public feedback in relation to the Transaction.

8. More information on the public consultation can be accessed and downloaded from the CCS website at www.ccs.gov.sg under the section “Public Register and Consultation ”. The closing date for submissions is on or before 27 November 2015. If the submission or correspondence contains confidential information, please also provide CCS with a non-confidential version of the submission or correspondence.

The Parties

HIBV

9. HIBV is an international investment holding company within the Heineken N.V corporate group of companies (“Heineken Group”). The Heineken Group is generally involved in the production, distribution, and sale of beer. In Singapore, the Heineken Group, which includes Asia Pacific Breweries (Singapore) Pte. Ltd. (“APBS”), is involved in the production, marketing, sale, distribution and supply of various brands of beer, ale, lager and stout in Singapore, including brands of beer which are held by the Heineken Group and third party brands which have been licensed to Heineken Singapore entities for supply in Singapore.

GAPL

10. GAPL is registered in Singapore. It does not directly produce or distribute the ABC Extra Stout and Guinness Draught and Guinness Foreign Extra Stout brands in Singapore, but holds these brand licenses in Singapore.

About The Competition Commission of Singapore (CCS)

CCS is a statutory board established under the Competition Act (Chapter 50B) on 1 January 2005 to administer and enforce the Act. It comes under the purview of the Ministry of Trade and Industry. The Act empowers CCS to investigate alleged anti-competitive activities, determine if such activities infringe the Act and impose suitable remedies, directions and financial penalties.

For more information, please visit www.ccs.gov.sg.

For media clarifications, please contact:

Ms. Grace Suen
Assistant Director
Communications
Competition Commission of Singapore
Email: grace_suen@ccs.gov.sg
DID: 6325 8216/ 983 58601